2018 Action plan

 

SSI's 2018 business plan is to be submitted to the General Shareholders' Meeting for approval at the end of April 2018 as follows:

 


Specific solutions for each Business Unit:  


SECURITIES SERVICES

With a view toward sustainable development, competitiveness and profit maximization for clients, SSI Securities Services sets out the following action plan for 2018:


Focus on servicing existing customers and acquiring new customers
For individual clients, the Company builds a customer classification and management system to fully understand the needs of each segment; Regularly reviews and classifies customers according to specific criteria to provide suitable products and customer care programs. In addition, the new client group will be focused for expansion. This group is highly potential when the demand for investment of this class is increasing. Securities Services will take the initiative and coordinate with Investment Banking to take advantage of the wave of equitization, first issuance, and IPOs to develop new clients.  


For institutional clients, the Company focuses on strengthening existing while developing new customers in traditional markets, especially those with new cash flows into Vietnam. SSI is also looking for suitable partners in key markets such as the US and Europe, to help the company increase the level of customer penetration, leveraging the relationships when necessary. In addition, new markets such as Japan, Korea, China, Dubai, UAE; and new customer groups such as Pension funds, Quantitative investment funds, and Home offices are also targeted in this year.


Design appropriate products, improve product quality for each customer group, invest in technology systems and be the leader in providing new products.
These are the main goals in the development strategy of SSI Securities Services. All products are designed specifically for the needs of customers. Investment advisory and analysis reports will continue to be invested to be more in-depth, from investment recommendations, investment ideas to products that offer specific investment opportunities in line with the taste of each customer group. Beside investment opportunities on the security market, the Company will continue to introduce other investment products such as derivatives, open-ended fund, ETFs, and warrants.


On the system side, the Company plans to install two new Bloomberg terminals to ensure the best services to the increasing institutional client base. The Company will coordinate with Bloomberg to implement the Best Execution Policy to obtain a quantitative assessment on performance of brokerage order for institutional clients. In addition, the process of receiving and placing DMA orders will be completed, towards the provision of DMA for derivative transactions.


Improve staff efficiency through effective implementation of recruitment, training, performance monitoring and career advancement.
Assessing the quality of the team is an important factor in maintaining and developing customer base. SSI Securities Services continues to focus on recruiting individuals who have the personality and ability to adapt to the Company's growth and corporate culture. For the Retail Broker group, the Company focuses on developing young staffs, in collaboration with universities, to implement career-oriented training programs from the time they were students. The recruitment process is carefully screened according to specific criteria, followed by career orientation training programs, and skills and professional training in connection with day-to-day work. Personnel assessment is carried out periodically to identify outstanding individuals for timely rewards, opening up advancement opportunities, and to place personnel in new challenges for continual progress. At the same time, the process of performance evaluating and supervising will also release individuals who do not fit the organizational culture. This process is carried out across various levels from brokers, brokerage units to transaction offices and branches. On the other hand, an important factor for success in personnel is to continue to supplement and complete broker training programs in each subgroup, especially internal training programs for management levels.


In 2018, the Company also plans to recruit more foreign personnel to handle potential markets, as well as seeking senior staff serving the Institutional Clients.


Developing a disciplined, professional, inspiring and motivated working environment
A disciplined and professional working environment presents an important factor in creating personal passion and dedication for customer services. To do this, SSI Securities Services will continue to complete and add new performance-based policies. Such policies will stimulate and motivate capable individuals to be rewarded in relation to their contributions. In addition, policy on periodic bonuses and rewards is also completed to recognize individuals and teams having good achievements. Motivational activities, such as internal sharing to spread positive elements, exchange activities in small groups according to product themes, sales, and investment methodology are also regularly held at branches and transaction offices throughout the Company.

 

 


TREASURY
Along with the high economic growth rate, the monetary and financial market is operating with stability and lower volatility: Government bond yields are kept at record low, maintaining a stable short-term monetary policy, along with stable exchange rates over the years. In addition, with the objectives and prospects of the security market in Vietnam to continue growing to become one of Emerging Markets, increasing the effectiveness of capital flows both in and outside the country in a near future, 2018 marks the milestone year to make the big breakthrough. As SSI is the leading securities company in the market, standing before such context SSI Treasury sees a great opportunity from the market to leverage internal resources to develop the 2018 business plan as follows:


Maintaining the growth of total capital of the Company and diversifying capital sources at low costs
The Company aims to grow its total capital by 10% in 2018 with abundant new sources of capital at reasonable costs. To achieve this goal, SSI Treasury continues to reach to and expand new sources such as: Issuance of convertible bonds targeting foreign financial institutions, establishment of credit lines with foreign banks in both local and foreign currencies to attract more low cost capital from international markets; continue to issue domestic bonds to both financial institutions and individual investors; in addition to continue expanding existing credit relationships in the country.


In parallel with the expansion of financial activities, Treasury continues to work with relevant stakeholders to develop risk management procedures and policies in line with international practices to ensure risk mitigation and liquidity for the system.


Expanding corporate bond trading, derivatives and structured products targeting various customer groups
Together with adequately ensuring liquidity and capital trading, in the coming 3-5 years, Treasury plans to explore and build new market segments such as Corporate Bonds Trading, Structured Products Underwriting, and diverse Derivative Products.


SSI views 2018 as the milestone year of the debt securities market, when the government bond market slows down, giving way to the corporate bond market. Amidst the backdrop of a number of other securities companies that have started off in this area, SSI has always been aware of its strengths as well as its weaknesses to find its own way. Closely coordinated with the Investment Banking and Securities Services, Treasury is expected to concentrate their efforts on developing Corporate Bonds, aiming to provide clients with many breakthrough products in 2018.


Coupled with the development of the Corporate Bond market, the mutual development of the Repo market and corresponding Debt Derivatives market, promises new opportunities for new product development, short term sales growth and long-term profit capturing.


Accompanying the development of the Vietnamese financial market in general and the prosperity of SSI in particular, SSI Treasury has long expected the long-term success of investment in the development of new market segments. Treasury also set their own targets for each new segment, namely increasing revenue generated from Interest Rate Swap trading by 10 times in 2017, doubling corporate bond trading in 2017, creating new structured products to continue diversifying products and services to serve customers.

 

 

SSI ASSET MANAGEMENT
In 2017, SSIAM has successfully implemented the annual action plan when individual clients, domestic institutions across investment funds and portfolio, and foreign funds all increased sharply. In 2018, SSIAM will promote the following areas:


Maintain outstanding investment results
SSIAM emphasizes great value creation for clients. SSIAM commits itself to the highest investment efficiency in managing entrusted funds for clients, based on analysis of investment objectives, risk tolerance, and customer liquidity needs. The fact that SSIAM does not manage SSI’s principal investment also represents our commitment to putting our clients' interests above our corporate profits.


Develop new distribution channels and distribution partners
SSIAM understands the importance of distribution channels in delivering products to clients effectively. In 2018, SSIAM will continue to closely connect with existing distribution partners to boost sales, as well as actively seek out new distribution partners.


In addition to the direct distribution channel with its distribution partners, SSIAM also concentrates resources to develop an electronic distribution channel, enabling clients to trade open-ended fund certificates, access open-ended fund account information Open and personal portfolio more quickly and conveniently.


Continue to diversify products to meet the diverse needs of customers
Currently, SSIAM is providing a wide range of products to its clients, from equity open-ended funds (domestic and foreign), bond open-ended funds, ETFs, and private equity funds. In 2018, SSIAM aims to introduce pension fund products to customers as soon as market conditions allow. This product is aimed at customers who are interested in preparing for retirement.

 


INVESTMENT BANKING

Continuing to pursue the mission of "Connecting capital to opportunities," affirming the leading position and promoting the development of investment banking services, SSI will continue to carry out various solutions in 2018 to create many new and high quality products for customers.


Focusing on expanding large-scale customer networks
IPO activities in the private sector has been more and more active, professional and in larger scale. Therefore, in 2018, SSI will focus on expanding its customer base to include large-scale private enterprises with potential growth in basic economic sectors. 2018 is also the year of many divestments of state-owned enterprises. Therefore, state-owned enterprises planning to divest their capital are also one of the target customers prioritized by the Company.


Continuing to build relationships with leading financial institutions
SSI Investing Banking always takes the initiative in finding and expanding relationships with leading financial institutions in the region and the world to exchange experiences and capture investment opportunities, providing customers with professional financial products in line with international standards while effectively and conveniently facilitating the capital connection between financial institutions and SSI clients.


Personnel training is key to improving the quality of advisory services
Humans are important factors in determining the quality of advisory services. Recognizing this, SSI Investment Banking will continue to focus on training qualified personnel with in-depth knowledge of the industry in charge, from which each has become an international-standard advisor, leveraging an in-depth understanding of the domestic market to bring about SSI's leading service quality.

 

 

PRINCIPAL INVESTMENT
Macroeconomic conditions in Vietnam is more positive than in previous years, helping to find more diverse enterprise investments. However, the world economy is still facing unpredictable changes: The Federal Reserve increases interest rates, along with interweaving policies in reducing globalization impact, protection and geo-politics.


SSI has identified a more flexible investment strategy and increased macroeconomic considerations: Specifically, SSI still sticks to the fundamental investing approach and reasonable valuation; employs portfolio allocation also ensures to capture market alpha while mitigating volatility risk (beta) of both domestic and foreign financial markets; balances long-term strategic investments and passive investments.


In addition, SSI also aggressively divests investments that have reached the expected return or no longer serve the associated value chain. The divestment will be done through strategic investors or business executives to minimize the potential impact on SSI's value where the Company holds a large stake.


Investment criteria are also adjusted in include new economic conditions such as: Strong growth of the private sector supported by the State, the consolidation of small enterprises into large enterprises, creating a competitive advantage in the process of integration to the global economy and in competing with foreign-related enterprises, and the progress or setback of trade agreements. As a result, SSI is investing in larger companies that are able to expand and create economies of scale. Investment mobility also expands to some of the faster-growing sectors such as retail, manufacturing, consumer, telecommunications, etc. In addition, SSI participates in the IPO and OTC markets as well as invests in structured products such as derivatives, secured warrants, M&A, etc.


SSI's investment plan upon separating the Principal Investment to be a standalone unit will be more transparent, flexible and diversified. Principal Investment will create more synergy with parts of SSI: Investment Banking (underwriting, co-invest), Securities Services (new products), and SSIAM also exchanges effective investment evaluation.